Dairy export opportunities in developing nations

Demand for quality dairy products in developing nations has provided a valuable opportunity for Australian and New Zealand producers.

Australian and New Zealand producers are looking to nations in Asia and Africa with emerging dairy markets and rising middles classes to expand their reach as dairy importers around the globe start reduce their dependence on exports.

A New analysis from business consulting firm Frost & Sullivan (Strategic Growth and Emerging Export Opportunities in the Australian and New Zealand Dairy Sector Nations) has predicted that the market will rise from $11.60 b in 2011 to reach $17.2 b by 2018.

“Exporters need to re-evaluate their marketing strategies to cater to newer customers, rather than simply concentrate on the big importers such as the United States and China,” said Frost & Sullivan Chemicals, Materials & Food research analyst, Natasha D’Costa.

“This will enable the exporters to not only address the healthy markets locally, but also help build global dairy demand.”

Frost and Sullivan believe that ANZ producers should take capitalise on the first mover advantage by entering these markets, and take advantage of the geographical proximity markets, particularly Asia.

However they have also warned produces of the challenges that exporters face regarding trade barriers, fluctuating currencies, price sensitivities, regulatory processes and cultural differences- especially regarding religious beliefs.

Frost and Sullivan have stipulated that exporters must position their products appropriately to align with the needs of the importing nations in order to be successful.

“Finding the right mix of existing and emerging key growth export nations will ensure that the ANZ dairy market grows from strength to strength both in terms of revenue and perceived brand value,” said D’Costa.


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